Explain how to synthetically create the equity-linked CD in Section 15.3 by using a forward contract on

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Explain how to synthetically create the equity-linked CD in Section 15.3 by using a forward contract on the S&P index and a put option instead of a call option.

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Question Posted: Aug 12, 2015 02:47 AM

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Explain how to synthetically create the equity-linked CD in Section 15.3 by using a forward contract on

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Let B e 00655 be the relevant discount factor The equity linked CD ...View the full answer

Derivatives Markets

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